Scott Besant's appointment as Treasury Secretary could help mortgage rates because his moderate stance on tariffs may keep inflation in check. The hedge fund manager is seen as a market-friendly choice that's already shifting expectations around borrowing costs.
The new Treasury Secretary was appointed and the mortgage market likes it. So Scott Besant was a hedge fund manager with Key Square Group, so he managed markets and he had to follow these things. The main overall reaction is the markets think he's pretty evenly balanced, pretty even keel, pretty reasonable in his decisions. He's managed funds before, so he should be efficient for the economy. And he actually has been a little bit off of tariffs where he wants to use it as a negotiation tool, but he's not so hardcore on them. So they think that's good for lower inflation when you increase tariffs. Makes things more expensive for out of country goods. So he's a little bit more reasonable on it. Should make it a little bit less expensive. That's good for inflation. We've talked about low inflation, meaning low mortgage rates. The market likes it. So far, it's positive reaction from the mortgage market today, so we'll be on the lookout for this. But it goes to show just how pivotal it is for the data and the perception that's what mortgage rates are waiting for. So another good move in the right direction.
